3 July 2017

LETTER FROM GLOBAL INVESTORS TO GOVERNMENTS OF THE G20 NATIONS

This letter is signed by 389 investors representing more than USD $22 trillion in assets.

As long-term institutional investors, we believe that the mitigation of climate change is essential for the safeguarding of our investments.

We have previously conveyed our strong support for the Paris Agreement [link] and we reiterate our call for governments to continue to support and fully implement the Agreement.

We urge all nations to stand by their commitments to the Agreement and to put in place policy measures to achieve their nationally-determined contributions (NDCs) with the utmost urgency. In addition, we ask governments to develop focused and targeted long-term climate plans by which their NDCs become aligned with the Paris Agreement’s goal of “holding the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels.”

The implementation of effective climate policy mechanisms and the regular monitoring of outcomes is vital for investors to make well-informed investment decisions that can also better support governments in delivering their national commitments and priorities.

To this end, we welcome the inclusion of climate change and the advancement of sustainable energy supply and energy efficiency as priority areas for the 2017 G20 Summit under the German Presidency. We also welcome the G20’s goal to foster “a secure, economically efficient and greenhouse gas-neutral energy supply accessible to everyone1”.

However, we are concerned that reference to climate change, climate finance and climate adaptation were omitted from the G20 Finance Ministers Communiqué in March 20172. We urge government leaders to ensure that climate change is explicitly acknowledged at the G20 Leaders Summit on 7-8th July. Investors believe it is vital that the governments of G7 and G20 nations continue to publicly express their commitment to support climate finance to both mitigate and adapt to the effects of climate change.

It is imperative that the public and private sectors work closely together to get the signalling and incentives right to shift the trillions of capital required across the global economy.

This includes creating the policy frameworks to support investment in low carbon assets now and into the future, to evolve the financial frameworks required to improve the availability, reliability and comparability of climate-related information, and to ensure the utilisation of tools and metrics that effectively incorporate the risks and opportunities into financial assessments.

1 G20 Germany 2017, “Priorities of the 2017 G20 Summit,” December 2016:8.

https://www.g20.org/Content/DE/_Anlagen/G7_G20/2016-g20-praesidentschaftspapier-en.pdf;jsessionid=645F531E333BD2B1C28C35C58CBC3B3D.s6t2?__blob=publicationFile&v=2 2 http://www.g20.utoronto.ca/2017/170318-finance-en.html

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Investors are willing and ready to work with governments to facilitate the changes that are needed to improve the pricing of climate-related financial impacts, and to mobilise the capital flows that are required to underpin a strong and resilient financial system.

With that in mind, we call on global leaders to:

• Continue to support and implement the Paris Agreement, including the implementation of NDCs and 2050 climate plans to achieve the goals of that agreement.

• Drive investment into the low carbon transition through aligning climate-related policies, phasing out fossil fuel subsidies and including carbon pricing where appropriate.

• Implement climate-related financial reporting frameworks, including supporting the Financial Stability Board Task Force on Climate-related Financial Disclosures recommendations.

We provide further detail on each of these three areas for action in the companion briefing paper entitled “Governments urged to maintain momentum on climate change action”.

Sincerely,

Note: The following 389 investor signatories with more than $22 trillion in assets are listed in alphabetical order by organisation name:

ABP

Acadian Asset Management, LLC

ACTIAM N.V.

Addenda Capital Inc.

Adrian Dominican Sisters Portfolio Advisory Board

Aegon N.V.

AGF Investments

Agriculture Capital

AIF Capital Limited

Aktia Bank

Alberta Investment Management Corporation

Albright Capital Management LLC

Alecta

Allianz Global Investors

Alphinity Investment Management

Alquity Investment Management Limited

Amalgamated Bank

AMF

AMP Capital

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AMUNDI

Andra AP-fonden (AP2)

AP3 Third Swedish National Pension Fund

AP4 Fourth Swedish National Pension Fund

AP7

APG Asset Management

Aquila Capital

Arabesque Asset Management Ltd

ARC Fiduciary

Ario Advisory

Arjuna Capital

Armstrong Asset Management

ASN Bank

Athens Impact Socially Responsible Investments

ATP

Australian Council of Superannuation Investors

Australian Ethical Investment Ltd

AustralianSuper

Avanz Capital

Avaron Asset Management

Aviva Investors

Aviva plc

Avon Pension Fund

AXA Group

AXA IM

Baillie Gifford

Baldwin Brothers Inc

BaltCap

Banco de Crédito Cooperativo-Grupo Cooperativo Cajamar

Bankhaus Schelhammer & Schattera

Barings LLC

Bâtirente

Bayerische Versorgungskammer

BBC Pension Trust Ltd

Bedfordshire Pension Fund

BMO Global Asset Management

BNP Paribas Asset Management

Bonnefield

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Boston Common Asset Management

Boston Trust & Investment Management Company/Walden Asset Management

Brawn Capital Limited

Bridges Fund Management Ltd

British Columbia Municipal Pension Plan

British Columbia Investment Management Corporation (bcIMC)

BT Financial Group

BT Investment Management

Bullitt Foundation

BVM Shareholder Education & Advocacy Group

Caisse des Dépôts - Groupe

Caja Ingenieros Gestión SGIIC

California State Controller

CalPERS

CalSTRS

Calvert Foundation

Calvert Research and Management

Candriam Investors Group

Capri Investment Group

Capricorn Investment Group

Cathay Financial Holding Co., Ltd.

Catholic Super

Cbus

CCLA

Celeste Funds Management

CFB Methodist Church

Chair of the Investment Committee of Archbishops Council

Christian Brothers Investment Services

Christian Super

Christopher Reynolds Foundation

Church Commissioners for England

Church Investors Group

Church of England Pensions Board

Church of Scotland Investors Trust

Church of Sweden

Clean Yield Asset Management

COMGEST

Committee on Mission Responsibility Through Investment, Presbyterian Church U.S.A.

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Community Capital Management

Congregation of Sisters of St. Agnes

Congregation of St. Joseph

Congregation of the Sisters of the Presentation – Newfoundland and Labrador Province

CoPower Inc

Cornerstone Capital Group

Creation Investments Capital Management, LLC

CRF for Local Government

Dana Investment Advisors

Danske Bank Asset Management

Daughters of Charity, Province of St. Louise

DBL Partners

Deutsche Asset Management

De Volksbank

de Volksbank N.V.

Developing World Markets

Dignity Health

Dominican Sisters of Sparkill

Dominican Sisters of Springfield, IL

Dundas Global Investors

Earth Capital Partners

Echo Foundation

Ecofi Investissements

Ecology Building Society

EdenTree Investment Management

Edmond de Rothschild Asset Management

EGAMO

Encourage Capital

Energy Power Partners

Environment Agency Pension Fund

Epic Capital Wealth Management

Episcopal Church Investment Group

ERAFP

ESG Moneta Co., Ltd.

Essex Investment Management, LLC

ESSSuper

Ethos Foundation Switzerland

Eurazeo

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Eurazeo PME

Evanston Capital Management, LLC

Everence and the Praxis Mutual Funds

FFI

Figure 8 Investment Strategies

First Affirmative Financial Network

FMO N.V.

FnB Private Equity

Fondo pensione Pegaso

Fonds de Réserve pour les Retraites

Första AP-fonden (AP1)

Friends Fiduciary Corporation

Frontier Advisors

Generate Capital

Generation Investment Management LLP

GEROA PENTSIOAK EPSV

George Gund Foundation

Global Challenges Foundation

Gloucestershire County Council LGPS Fund

Goodyields Capital GmbH

Greater Manchester Pension Fund

Green Century Capital Management

Greencape Capital

Grupo Financiero Banorte S.A.B. de C.V.

Handelsbanken Asset Management

Henderson Global Investors

Hermes Investment Management

HESTA

Hewlett Foundation

Hexavest

HQ Capital

HSBC Bank Pension Trust (UK) Limited

HSBC Global Asset Management

IBVM Canadian Province (Loretto Sisters)

ICCR (Interfaith Center on Corporate Responsibility)

IFM Investors

Impact Investors

ImpactAssets

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Impax Asset Management

Industriens Pension

Inflection Point Capital Management

Insight Investment

Instructional Telecommunications Foundation, Inc.

Interamerican Insurance Group

Investec Asset Management

Investisseurs et Partenaires

Ircantec

Ivey Foundation

JSA Financial Group

Jupiter Asset Management

KBI Global Investors

Kaete Investimentos

Kempen Capital Management

KEPLER-FONDS KAG

Keva

KLP

Lacan Investimentos

Lægernes Pension

Länsförsäkringar AB

Länsförsäkringar Sak Försäkringsaktiebolag

Legal & General Investment Management

Legato Capital Management

Local Authority Pension Fund Forum

Local Government Super

London Pensions Fund Authority

LUCRF Super (Labour Union Co-operative Retirement Fund)

M&G Investments

Macroclimate LLC

MAIF

Manulife

Marguerite Adviser SA

Marshall Street Management

Maryland State Treasurer's Office

MBO Partenaires

Mellon Capital Management

Mennonite Education Agency

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Mercer Investments

Merck Family Fund

Mercy Health

Mercy Investment Services

Methodist Church in Ireland

MFS Investment Management

Miller/Howard Investments, Inc.

Mirova

Mistra The Swedish Foundation for Strategic Environmental Research

MN

MP Pension - Pensionskassen for Magistre & Psykologer

MPC Renewable Energies GmbH

Munich Re (Group)

Nanuk Asset Management Pty Ltd

National Association of Analysts and Investment Professionals in Capital Markets - Apimec

Natixis Asset Management

Natural Investments

NEI Investments

Neumeier Poma Investment Counsel, LLC

New York City Comptroller

New York State Comptroller

NewQuest Capital Partners

Newton Investment Management

NN Investment Partners

Nordea Wealth Management

nordIX AG

North East Scotland Pension Fund

NorthEdge Capital LLP

Northern Ireland Local Government Officers' Superannuation Committee

NorthStar Asset Management, Inc.

Northwest Coalition for Responsible Investment

OceanRock Investments, a wholly-owned subsidiary of Qtrade Financial Group

OFI AM

Öhman Fonder

Ontario Pension Board

Ontario Teachers' Pension Plan

OP Wealth Management

OPTrust

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Oregon State Treasurer

Osmosis Investment Management

Ownership Capital

P+ (DIP/JØP)

PAI Partners

Pædagogernes Pension, PBU

Palisade Investment Partners

Parametric Portfolio Associates

Park Foundation

Partners Group

Paul Hamlyn Foundation

Pax World Funds

Pegasus Capital Advisors, L.P.

PenSam

Pensioenfonds Metaal en Techniek (PMT)

Pensioenfonds Metalektro (PME)

Pension Plan of The United Church of Canada

PensionDanmark

Pensions Caixa 30 CaixaBank Employee

Permian Global

PFA Pension

Phenix Capital

PKA Pension

Pictet Asset Management

Plater Trust

Priests of the Sacred Heart, US Province

Progressive Investment Management

Province of St. Joseph of the Capuchin Order

Pyrford International Ltd

Quoniam Asset Management GmbH

Raiffeisen Capital Management

RAM Active Investments

Rathbone Greenbank Investments

Red Mountain Capital Partners

Régime de retraite de l'Université de Montréal

Region VI Coalition for Responsible Investment

REI Super

Reynders, McVeigh Capital Management, LLC

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Richmond Global Compass Fund

Riverwater Partners LLC

Robeco

RobecoSAM

Robert and Patricia Switzer Foundation

Roche Brune AM

Rockefeller Asset Management

Rockefeller Brothers Fund

Sampension

Sarasin & Partners

School Sisters of Notre Dame Cooperative Investment Fund

School Sisters of St. Francis

Schroders

SCOR SE

Seamans Capital Management, LLC

Seattle City Employees' Retirement System

SEB Investment Management

Seventh Generation Interfaith Coalition for Responsible Investement

SHARE

SharePower Responsible Investing, Inc.

Sierra Club Foundation

Sisters of Bon Secours USA

Sisters of Charity of Cincinnati

Sisters of Instruction of the Child Jesus

Sisters of Saint Joseph of Chestnut Hill, Philadelphia, PA

Sisters of St. Dominic of Caldwell NJ

Sisters of St. Francis of Philadelphia

Sit Investment Associates, Inc.

Skoll Foundation

SKY Harbor Capital Management, LLC

Social Justice Committee of the UU Congregation at Shelter Rock

Solaris Investment Managament

Sonen Capital

South Yorkshire Pensions Authority

Spiltan Fonder

Spoorwegpensioenfonds

Stafford Capital

Stance Capital

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Standard Life Investments

Statewide Super

Steyler Ethik Bank

Stichting Bedrijfstakpensioenfonds voor de Bouwnijverheid

Stichting Pensioenfonds voor de Woningcorporaties

Stichting Personeelspensioenfonds APG

Storebrand

Strathclyde Pension Fund

Swedbank Robur

Swift Foundation

Sycomore AM

Terra Alpha Investments, LLC

The Atkinson Foundation

The Catherine Donnelly Foundation

The Hampshire Companies

The John Merck Fund

The Joseph Rowntree Charitable Trust

The Laird Norton Family Foundation

The Lutheran Council of Great Britain

The McKnight Foundation

The Nathan Cummings Foundation

The Pension Boards-UCC, Inc.

The Russell Family Foundation

The Servite Friars UK & Ireland

The Sisters of St. Ann

The Sustainability Group of Loring, Wolcott & Coolidge

The Tellus Mater Foundation

The United Church of Canada

TPT Retirement Solutions

Tri-State Coalition for Responsible Investment

Tribe Impact Capital

Trillium Asset Management

Trilogy Global Advisors, LP

Trinity Health

Triodos Investment Management

True Green Capital Management LLC

Union Investment

Union Mutualiste Retraite

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Unipol Gruppo

UNISON Staff Pension Scheme

Unitarian Universalist Association

Unitarian Universalist Service Committee (UUSC)

United Nations Foundation

Universities Superannuation Scheme – USS

University of Toronto Asset Management Corporation

Vancity Investment Management Ltd.

VBV - Vorsorgekasse AG

Veris Wealth Partners

Veritas Pension Insurance Company

VicSuper Pty Ltd

VidaCaixa

Vision Super Pty Ltd

Volksbank Vorarlberg e. Gen.

WaveCrest Wealth Management

WaveStone Capital

Wermuth Asset Management GmbH

Wespath Benefits and Investments

West Midlands Pension Fund

Wetherby Asset Management

WHEB Asset Management

Wilbanks Partners llc

World Resources Institute (WRI)

Zevin Asset Management

Zürcher Kantonalbank

Zurich Insurance Group

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This letter is signed by investors and co-ordinated by the following organisations:

Asia Investor Group on Climate Change (AIGCC) is an initiative to create awareness among Asia’s asset owners and financial institutions about the risks and opportunities associated with climate change and low carbon investing. AIGCC provides capacity for investors to share best practice and to collaborate on investment activity, credit analysis, risk management, engagement and policy. AIGCC represents the Asian investor perspective in the evolving global discussions on climate change and the transition to a greener economy. See www.aigcc.net and @AIGCC_Update.

CDP, formerly the Carbon Disclosure Project, is an international non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. CDP represents institutional investors with trillions in assets, helping to leverage investor and buyer power to motivate companies to disclose and manage their environmental impacts; whilst also providing insights into corporate environmental performance for investors. Over 5,800 companies with some 60% of global market capitalisation disclosed environmental data through CDP in 2016 alongside 500 cities and 100 states and regions, making CDP’s platform one of the richest sources of information globally on how companies and governments are driving

environmental change. Please visit www.cdp.net or follow us @CDP to find out more.

Ceres is a sustainability non-profit organization working with the most influential investors and companies in North America to build leadership and drive solutions throughout the economy. Through powerful networks and advocacy, Ceres tackles the world’s biggest sustainability challenges, including climate change, water scarcity and pollution, and human rights abuses. The Ceres Investor Network on Climate Risk and Sustainability, comprising investors with trillions in assets, advances leading investment practices, corporate engagement strategies and policy solutions to build an equitable, sustainable global economy and planet. For more information, visit www.ceres.org and follow @CeresNews.

Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand institutional investors and advisors focusing on the impact that climate change has on the financial value of investments. IGCC aims to encourage government policies and investment practices that address the risks and opportunities of climate change. For more information, visit www.igcc.org.au and @IGCC_Update.

Institutional Investors Group on Climate Change (IIGCC) is a collaborative forum for organisations in 9 European countries who manage trillions in assets. Its membership spans everything from belief-based funds to mainstream investors, from pension funds to fund managers and private equity houses. Its mission is to provide investors with a common voice to encourage public policies, investment practices and corporate behaviour which address long-term risks and opportunities associated with climate change. For more information, visit www.iigcc.org & @iigccnews.

The United Nations-supported Principles for Responsible Investment (PRI) is the world’s leading initiative on responsible investment. The six Principles for Responsible Investment are a voluntary

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and aspirational set of investment principles for incorporating environmental, social and governance issues into investment practices. In implementing the principles, signatories contribute to developing a more sustainable global financial system. The principles have signatories including asset owners, investment managers and service providers from over 50 countries including the G20, For more information, visit www.unpri.org and @PRI_News.

AIGCC, IGCC, IIGCC and INCR collaborate regularly as members of the Global Investor Coalition on Climate Change. All of the groups (along with UNEP FI) co-sponsor the Investor Platform for Climate Actions.